Final Rule
5 CFR 1315: Prompt Payment; Formerly OMB Circular A-125

Summary: The Prompt Payment Final Rule (formerly OMB Circular
A-125, "Prompt Payment") requires Executive departments and agencies to pay
commercial obligations within certain time periods and to pay interest penalties when
payments are late. On June 17, 1998, the Office of Management and Budget (OMB) requested
comment on proposed revisions to the Circular. The Circular was revised to reflect the
increased use of electronic commerce in the Federal government and the private sector and
to reflect the requirements of the Debt Collection Improvement Act (DCIA) of 1996 .
Comments were received from 21 entities, including 15 Federal agencies, five vendors, and
one university. After considering the comments received, OMB issued final rule 5 CFR 1315
on September 29, 1999.

Related Regulations:

FAR EFT Final Rule: (3/4/99);
published by DoD, GSA, and NASA
The Federal Acquisition Regulation (FAR) Electronic Funds Transfer
(EFT) final rule addresses the use of electronic funds transfer for federal contract
payments and provides for the collection of banking information from vendors.